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ASSOCIATED HEALTHCARE INDUSTRIES SIGNS LETTER OF INTENT TO ACQUIRE CONTOUR FABRICATORS

 ASSOCIATED HEALTHCARE INDUSTRIES SIGNS LETTER OF INTENT
 TO ACQUIRE CONTOUR FABRICATORS
 CLEARWATER, Fla., June 11 /PRNewswire/ -- Associated Healthcare Industries, Inc. (OTC Bulletin Board: AHII) announced that they have signed a letter of intent to acquire Contour Fabricators, Inc. and Contour Fabricators of Florida, (jointly CFI) for $7 million in cash and stock. CFI is currently producing revenues of approximately $4 million annually with an average net pretax margin in excess of 25 percent. The current CFI management group will continue to operate the business and brings a welcome level of medical product manufacturing expertise to the AHII family.
 CFI's Michigan operation began production in 1974 and from its inception has exclusively manufactured products for the health care industry. CFI initially began manufacturing products for the medical imaging sector and as a leader in design and fabrication have since diversified into the area of patient rehabilitation and care products. CFI's Michigan operation is situated on 12 acres in Grand Blanc, Mich. and the Florida operation is housed in a 22,000 square foot facility in Clearwater, Fla., employing 30 full time and 30 part time employees.
 In addition to years of experience working with foams, plastics and coverings, CFI provides extensive manufacturing capabilities to AHII and further expands production capabilities for planned product line expansions.
 AHII is currently manufacturing sterile products through its subsidiary, Zygiene Medical Technologies, Inc. and also has begun manufacturing specialty products which include both sterile and "clean" kits used by hospitals, nursing homes, and home therapy providers for patient care. AHII and its affiliates will focus on the high end user sector of the specialty product distribution market as well as building on their already established base of OEM clients.
 Pending successful completion of the CFI acquisition, AHII's projected sales on existing AHII contracts combined with sales from the CFI acquisition put the AHII 1993 projected revenues in excess of $10 million with pretax margins expected to be 25 percent or better.
 -0- 6/11/92 R
 /CONTACT: Robert James, vice president of investor relations of Associated Healthcare Industries, 813-573-3312/
 (AHII) CO: Associated Healthcare Industries, Inc.; Contour Fabricators, Inc. ST: Florida IN: HEA SU: TNM


SS-JJ -- FL006 -- 9262 06/11/92 13:14 EDT
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Publication:PR Newswire
Date:Jun 11, 1992
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